The Taxation of Married Couples in Germany: Distributive and Allocative Aspects

Spahn, Paul Bernd; Kaiser, Helmut; Kassella, Thomas

doi:10.1007/978-3-642-79037-9_21

Cited by 3 publications

(3 citation statements)

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“…12 According to Bonin and Euwals (2001), prior to reunification, the labour force participation rate of East German women was nearly 80%. This rate of participation was comparable only to those in Scandinavian countries, and much higher than the labour force participation rate of women in West Germany where the negative impact of laws governing maternity leave and income taxation of couples is well established (Strøm and Wagenhals, 1991;Spahn et al, 1994). This trend persisted after the reunification, despite a significant decline in employment opportunities facing East German woman in the aftermath of reunification.…”

Section: Uncertaintiesmentioning

confidence: 70%

Real options and demographic decisions: empirical evidence from East and West Germany

Bhaumik

Nugent

2011

Applied Economics

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Iyer and Velu (2006) have convincingly argued that contemporary analyses of fertility behaviour fail to explain why a woman (or a couple) will choose to postpone childbirth, and in particular to consider the role of uncertainty in this regard. They have addressed this lacuna in the literature by using a real options approach to model fertility decisions by relating uncertainty experienced by individuals to the likelihood of childbirth. However, they did not present empirical evidence. Since the theory implies the existence of two offsetting effects of uncertainty on fertility decisions, a positive insurance effect and a negative option value effect, it is not easy to reject the theory on the basis of empirical analysis, when one of these effects offsets the other. We construct such a test for East (and also West) Germany during that country's reunification, which takes advantage of the fact that because of the country's strong welfare system, the insurance effect should be dominated by the option value effect, thereby suggesting that the net relationship should be negative. The results provide rather strong support for the real options link, especially for Eastern Germany.

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Section: Uncertaintiesmentioning

confidence: 70%

Real options and demographic decisions: empirical evidence from East and West Germany

Bhaumik

Nugent

2011

Applied Economics

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show abstract

“…9 According to Bonin and Euwals (2001), prior to reunification, the labor force participation rate of East German women was nearly 80 percent. This rate of participation was comparable only to those in Scandinavian countries, and much higher than the labor force participation rate of women in West Germany where the negative impact of laws governing maternity leave and income taxation of couples is well established (Strøm and Wagenhals, 1991;Spahn et al, 1994). This trend persisted after the reunification, despite a significant decline in employment opportunities facing East German woman in the aftermath of reunification.…”

Section: Endnotesmentioning

confidence: 80%

Does Economic Uncertainty Affect the Decision to Bear Children? Evidence from East and West Germany

Bhaumik

Nugent

2005

SSRN Journal

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“…The principle of full income splitting locks women in a family trap, as it imposes high marginal tax rates on second-earner wages. For West Germany, the negative impact on labor supply of married women is a well-established fact (Spahn et al, 1994;Strøm and Wagenhals, 1991).…”

Section: Labor Market Trends After Unificationmentioning

confidence: 99%